SoFla construction starts plummet 54% in June

Residential construction dropped 61% to $265M

Miami /
Jul.July 30, 2020 03:30 PM
(iStock)

(iStock)

South Florida construction starts took a nosedive in June, continuing the trend since the coronavirus pandemic began.

Nonresidential construction declined 43 percent in June, year-over-year, to $239.6 million, while residential construction dropped 61 percent to $265.4 million during the same period, according to a new report from Dodge Data & Analytics.

Total building construction fell 54 percent in June to $504 million, according to the report.

Nonresidential buildings include office, retail, hotels, warehouses, and healthcare, whereas residential buildings include single-family homes and multifamily housing.

For months, construction has slowed in both residential and commercial real estate due to the impacts of coronavirus.

In May, new construction starts in South Florida declined 25 percent to $558.8 million, down from $749.4 million in May 2019, according to Dodge Data & Analytics. And in April, total construction starts dropped 33 percent to $684.4 million, down from $1.03 billion in April 2019.

Construction was designated an essential business by the state of Florida and allowed to continue during the pandemic. Yet, contractors and subcontractors still reported challenges, such as rising material costs and difficulties with obtaining supplies produced in China. Some contractors said they had to find new suppliers since businesses such as marble slab companies were deemed non-essential and were required to shut their doors.

The drop in construction starts could also be due to a decline in new permits, experts say. Most cities in South Florida stopped processing new permit applications for one to two months, which could have an impact on contractors and developers this summer.


Related Articles

arrow_forward_ios
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
South Florida resi construction starts take hit in February (Getty)
South Florida resi construction starts take hit in February
South Florida resi construction starts take hit in February
Royal Palm Business Plaza at 9200 Belvedere Road in Royal Palm Beach (Google Maps, US District Court Southern District of Florida/Illustration by Alexis Manrodt for The Real Deal)
Joseph Walsh hit with $26M judgment over alleged Royal Palm Beach EB-5 fraud
Joseph Walsh hit with $26M judgment over alleged Royal Palm Beach EB-5 fraud
Ryan Companies CEO Brian Murray and CFO Lisa Kro with 13241 Southwest 136th Street (Google Maps)
Ryan Cos. buys Kendall site, scores $28M construction loan for e-commerce warehouse
Ryan Cos. buys Kendall site, scores $28M construction loan for e-commerce warehouse
Rendering of Plantation apartments with PGIM's Eric Adler and Stiles Corp's Ken Stiles (Stiles)
Stiles, PGIM buy Plantation multifamily dev site from synagogue, score $64M financing
Stiles, PGIM buy Plantation multifamily dev site from synagogue, score $64M financing
Frank Mendez with Patricio Cordero (inset) and the property (Linkedin, Google Maps)
Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
(iStock)
South Florida construction starts fall in January
South Florida construction starts fall in January
Southland Mall in Cutler Bay (Google Maps)
Lender takes control of struggling Southland Mall in Cutler Bay
Lender takes control of struggling Southland Mall in Cutler Bay
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...